Hedera (HBAR) and XRP are US-based cryptocurrency projects that have demonstrated a notable correlation in their price movements over the past year, leading analysts to speculate about potential outcomes by the year’s end. Expectations are building around positive indications from both assets, encompassing both technical and fundamental analyses that could propel their prices upward as 2023 approaches its conclusion.
Hedera is recognized as a public distributed ledger platform that employs hashgraph consensus and is overseen by a council comprised of prominent companies across various industries. In contrast, XRP serves as the native token of the XRP Ledger (XRPL), a decentralized blockchain developed by Ripple designed to facilitate swift and efficient cross-border transactions.
The analysis of the correlation between HBAR and XRP is substantiated by tangible data. Throughout the year, both assets have exhibited parallel price trajectories. Correlation metrics from DefiLlama reveal a significant alignment in investor sentiment, with a remarkable correlation coefficient of 0.97 over a seven-day period, 0.93 over a month, and 0.89 spanning a year. Such strong figures provide technical analysts with a foundation for making informed predictions regarding future price movements.
Analyst Steph Is Crypto has identified that both assets appear to be forming a falling wedge pattern, with prices nearing the completion of this formation in anticipation of a breakout rumored for September. The falling wedge is regarded as a classic bullish chart pattern, and Fibonacci projections suggest that XRP could surge to around $4.6, while HBAR might reach approximately $0.4.
Beyond short-term forecasts, many investors maintain confidence in the long-term growth potential of both tokens, regarding them as essential holds during bearish market phases. Investor Dylan Deloach stated, “Both are long-term holds in my opinion. You’d be crazy not to hold until the next bull cycle.” He emphasized that coins gaining traction and utility are likely to be less affected by retracement during market downturns compared to previous cycles.
However, some market players speculate that HBAR could outpace XRP based on their respective tokenomics. With XRP capped at a total supply of 100 billion tokens, 60% of which are currently in circulation, it may encounter prolonged unlocking pressures. Conversely, HBAR has a total supply of 50 billion tokens, with over 84% already in circulation, potentially providing it with an advantage.
As the year progresses, both projects continue to pursue unique strategies to drive price momentum. Hedera is expanding its ecosystem through prominent events, including Sibos 2025, a significant FinTech conference hosted by SWIFT, and is engaging in initiatives related to stablecoins, Central Bank Digital Currencies (CBDCs), and decentralized finance (DeFi). Meanwhile, Ripple is focused on building robust partnerships with banking institutions while advancing its RLUSD stablecoin and benefitting from positive news regarding its ongoing legal confrontation with the SEC, which has notably enhanced investor sentiment.
As developments unfold, the crypto community remains watchful of how these factors will influence the trajectories of both Hedera and XRP leading into 2024.
